CIPFA welcomes upcoming new legal form for charities


The government is this month expected to make an announcement on a new legal form for charities. In anticipation of this John Maddocks, CIPFA’s Third Sector Technical Manager, has welcomed the benefits that this will bring to third sector organisations.

Previously, the charitable incorporated organisation (CIO) legal form had only been available in Scotland. The CIO offers the advantages of a corporate structure such as reduced personal liability while removing some of the regulatory complexity. The CIO registers with the charity regulator and is not regulated by Companies House and company law.

John Maddocks commented,

“The Charity Commission suggests that a CIO will be most suitable for small to medium-sized organisations that employ staff and enter into contracts. For those wanting an incorporated form it offers simpler simpler accounting and reporting especially where gross income is £250,000 or less, as well as lower administrative and filing costs.

“It is perhaps a legal form for our times, one that makes life a little easier for new enterprises able to embrace charitable purposes; and one that balances regulatory and reporting requirements with a simpler way for getting new charitable enterprises up and running, while retaining the benefits of a corporate structure.”



CIPFA Press Office

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CIPFA, the Chartered Institute of Public Finance and Accountancy, is the professional body for people in public finance. Our 14,000 members work throughout the public services, in national audit agencies, in major accountancy firms, and in other bodies where public money needs to be effectively and efficiently managed. As the world’s only professional accountancy body to specialise in public services, CIPFA’s portfolio of qualifications are the foundation for a career in public finance. They include the benchmark professional qualification for public sector accountants as well as a postgraduate diploma for people already working in leadership positions. They are taught by our in-house CIPFA Education and Training Centre as well as other places of learning around the world. We also champion high performance in public services, translating our experience and insight into clear advice and practical services. They include information and guidance, courses and conferences, property and asset management solutions, consultancy and interim people for a range of public sector clients. Globally, CIPFA shows the way in public finance by standing up for sound public financial management and good governance. We work with donors, partner governments, accountancy bodies and the public sector around the world to advance public finance and support better public services. This includes the development of local professional qualifications in African countries like Lesotho and Nigeria and in Europe in post conflict states in the Balkans.